Creative SME Regional Strategy

Screen Image & Sound Cluster

Developing the digital media sector in the West Midlands

Drive 3 Programme, 3rd June 2008

David Furmage

Digital Media Policy Lead &Screen, Image & Sound Cluster Manager

Regional Government, UK.

044 121 503 3397www.advantagewm.co.uk

[email protected]

mailto:[email protected]

Presentation Outline..

Profile & recent achievements

Digital Media Fund& Defining ‘digital’

Innovation Funding & Keys to Success

Your Feedback & topPriorities for Resources

Simplified Business Support & Products

Target Markets &Strategic Priorities

West Midlands is a UK leader in digital media

Population 5.3 million9% of the UK population

Birmingham, 2nd City only to London

rich mix of communities with diverse cultural backgrounds



digital media … influences everbody’s lives

…from leisure and lifestyle…

…to business and communications……to business and communications…


digital media … influences everbody’s lives

…from leisure and lifestyle…

…to business and communications……to business and communications…

The creative and cultural sector is 10% of the West Midlands economy…

The creative and cultural sector is 10% of the West Midlands economy…


Regional Strengths in West Midlands…

20% UK Games Production

serious gamesUK hub, games based learning, virtual worlds, co-funded SGI


Film active region For production



Interactive mediaTop New media agencies




Interactive mediaTop New media agencies

Talent. Higher education. Easy to reach. low costTalent. Higher education. Easy to reach. low cost

BIRMINGHAMmajor digital

hub for UK

MUSIC PRODUCTIONBirmingham top 5 global destination for diversity




Recent Achievements…

£7m SGI &Serious Virtual

Worlds Conference


£4m Film Fund‘Confetti’ first 15%

£7m SGI &Serious Virtual

Worlds Conference

£600K Developmentfilm, tv, digital

£5m Digital Mediacommercial, art, Ch4 Channel 4

national commissioning

hub for 4IP



£7m SGI &

Digital Event

Oct 2008

creative cities

50% inBirmingham

Creative Space, Hubs… Creative Space, Hubs…

Serious Virtual Worlds Conference




hub for 4IP

European Regions in top 5



£7m SGI &

Digital Event

Oct 2008

ITC £800K IDM poc, demo, champions

creative cities

50% inBirmingham

Creative Space, Hubs… Creative Space, Hubs…

Serious Virtual Worlds Conference




hub for 4IP

European Regions in top 5

1045 business assists 137 new businesses created 232 jobs created/safeguarded

40 people helped into jobs 218 people up-skilled 140 knowledge base collaborations

Others… games, music

fi

lm t

v g

am

es

w

eb s

eri

ous

gam

es

Digital Media … vertical and horizontal

aerospace automotive business professional government health military creative

strengthen clustercompanies

digital media as a horizontal enabler

fi

lm t

v g

am

es

w

eb s

eri

ous

gam

es

Digital Media … vertical and horizontal

aerospace automotive business professional government health military creative

strengthen clustercompanies

digital media as a horizontal enabler

Cluster targets high growth markets…

Digital Content for Entertainmentnew business models, new content types

Digital Lifestyleinnovating new forms of digital media

for citizens, tourists and business

Cluster targets high growth markets…

Digital Content for Entertainmentnew business models, new content types

Exploit Web 2.0 & Serious Gamesvirtual worlds, immersive education, mash-ups data simulation, new communities, use it, sell it!

Digital Lifestyleinnovating new forms of digital media

for citizens, tourists and business

Create New Marketsin digital media - with a sense of urgency

using 4IP, ICT, TSB, EuropeanVC, HE…

Strategic Priorities…Building Success

influence digital media raise profile, = more £p

encourage innovationdevelop new markets




support sector focusedbusiness and skills support

signposting, networks build supply chains

improve regional dataand intelligence




support sector focusedbusiness and skills support

signposting, networks build supply chains

improve regional dataand intelligence

Innovation Technology Council

Technology Strategy Board

Access to Finance

idea Journey from seed to product launch

Innovation is the key to growth. But we must build on solid foundations, getting the basics right for business growth…

understanding…

…the journey

Our Approach to Funding & Support …

idea Journey from seed to product launch

To get the basics right … We have identified three ‘journeys’ that we must understand when setting policies…

SME Journey from start-up to maturity and growth

Information journey to navigate the opportunities and the support

understanding…

…the journey

Our Approach to Funding & Support …

our policies ensure funding roots clear for all these ‘journeys’

Streamlining publicly funded support for SME’s

Easier to understand and access

Better value for public money

Measurable economic impact and policy goals

Business Simplification Programme - BSSP

ANYTHING WE DO REGIONALLY MUST DOVETAIL WITH BSSP NATIONALLY

www.berr.gov.uk/bbf/index.html

Streamlining publicly funded support for SME’s

Easier to understand and access

Better value for public money

Measurable economic impact and policy goals

ANYTHING WE DO REGIONALLY MUST DOVETAIL WITH BSSP NATIONALLY

www.berr.gov.uk/bbf/index.html

Business Link will lead on delivery: Diagnostic/brokerage, 4 levels: informationtransactional, intermediate, transformational

Screen WM and other

support must extend not duplicate

the core offer and dovetail with Business

Link

Business Simplification Programme - BSSP

New simpler range of business support products fully introduced by 2010

AWM and Business Link funding, including monies to Screen WM, etc., must fit one of these product categories

Available during 2008:

Export Credit GuaranteeSkills Solutions for BusinessCapital InvestmentPreparing to ExportInvestigating New Overseas MarketsGetting the most from Foreign Direct

InvestmentBusiness Collaboration NetworksShared Business Support Environments

Business Simplification Programme - Products

New simpler range of business support products fully introduced by 2010

Business Simplification Programme PRODUCTS

AWM and Business Link funding, including monies to Screen WM, etc., must fit one of these product categories

Available from 2009:

Debt FinanceRisk CapitalFinance Awareness & CapabilityBusiness CreationBusiness expertise for GrowthPromoting Resource Efficiency & Sustainable Waste ManagementProtecting the Natural EnvironmentLocal Community Business CoachingInnovation Finance & Innovation Collaboration

17 Products. Funding NOTguaranteed

€5m film Fund €750K development Fundskills, education, festivals, archive, scripting, shorts… BIG GAP for a fund TO BACK ‘DIGITAL MEDIA’ GROWTH.

Bir

min

gham

Specific Sector Support…

… Screen Agency leads on ‘At Market’ Funds for projects, skills Development and business support…

Business Link’s Creative and Digital Industries team work with others for the intermediate and transformational brokerage…

Launching a Digital Media Fund

£30m 4IP Digital Media Fund launchedEnglish & Welsh Commissioning hub in Birmingham

"to deliver publicly valuable content

and services on digital media platforms"

Public Service Broadcaster

in UK. Funded by adverts.

A lesson in Giving projects

enough resources to succeed

Bir

min

gham

Public Service Broadcaster

in UK. Funded by adverts.

£5m from AWM

£30m 4IP Digital Media Fund launchedIncludes £10m ring-fenced for West Midlands

Backing commercial potential, but not a VC Fund.

Open to other commercial and arts partners.

Launching a Digital Media Fund

Bir

min

gham

What is Digital Media?

Digital television, digital radio, internet and mobile

One of those terms that has many meanings!


Digital television, digital radio, internet and mobile

Screen, Image & Sound ClusterAll ‘digital creative industries’

Film, television, animation, interactive media, games, radio, music, digital imaging


For our Digital Media and Innovation Funds it is …

Pix

el Le

arn

ing

Distribution platforms such as broadband, mobile and digital

broadcasting which have emerged in contrast to

traditional analogue broadcasting.

Includes internet based and mobile distribution

systems and technologies which permit a more complex,

interactive relationship and allow users to create, modify

and comment on content.

Public Service Broadcaster In UK Funded

by adverts.


For our Digital Media and Innovation Funds it is …

Digital new media includes…

Computer aided social networks

Pix

el Le

arn

ing

Distribution platforms such as broadband, mobile and digital

broadcasting which have emerged in contrast to

traditional analogue broadcasting.

Includes internet based and mobile distribution

systems and technologies which permit a more complex,

interactive relationship and allow users to create, modify

and comment on content.

Peer to peer and file sharing

technologies

Collaborative knowledge networks

Thought of as content, but can equally cover coding and technology creation

On-line Journalism

and Broadcasting

Imagined and alternative life

networksInteractiveLearning

and leisure

anything interesting

we’ve Missed..!

10 At Market

Com

merc

ial &

VC

TLR - Technology Readiness Levels

9 Final proving

5 Validation-real

2 Concept/application formulated

4 Validation-lab

1 Basic Principles

3 Proving concepts

6 Prototype demo-lab

8 Test and demo

7 Prototype demo-real

Univ

ers

ity

TSB

Clu

ster

Inn

ovati

on

Innovation Centred Funding Approach…

MOST FUNDING IS ‘AT MARKET’INNOVATION NEEDS US TOTHINK WIDER - TLR SCALE

10 At Market

Com

merc

ial &

VC


9 Final proving

5 Validation-real


4 Validation-lab

1 Basic Principles

3 Proving concepts


8 Test and demo


Univ

ers

ity

TSB

Clu

ster

Inn

ovati

on


10 At Market

Com

merc

ial &

VC


9 Final proving

5 Validation-real


4 Validation-lab

1 Basic Principles

3 Proving concepts



Univ

ers

ity

TSB

Clu

ster

Inn

ovati

on

Inn

ovati

on F

un

din

gPro

of

of

con

cep

t

Dig

ital M

edia

Fund

Near

Mark

et

Exp

loit

2.0

now

8 Test and demo


£1m

£10m+

£.75m

ACF

10 At Market

Com

merc

ial &

VC


9 Final proving

5 Validation-real


4 Validation-lab

1 Basic Principles

3 Proving concepts


8 Test and demo


Univ

ers

ity

TSB

Clu

ster

Inn

ovati

on

Film, DevelopmentOther Cluster


Inn

ovati

on F

un

din

gPro

of

of

con

cep

t

Dig

ital M

edia

Fund

Near

Mark

et

Exp

loit

2.0

now

£10m+

£.75m

£1m

£4m, £.6m £.5m, £1.5m

ACF

Keys to Success …

Development Fund£600K up to £50Kpilots, pitchesconditional loan

Links to and extendsBusiness linksupport framework

Most popular measure

with SME’s

Keys to Success …

Development Fund£600K up to £50Kpilots, pitchesconditional loan

Hot housing Ideas

Links to and extendsBusiness linksupport framework

Most popular measure

with SME’s Innovation Labs

Dare to be Digital

Competitions, hot-housing talent, 5 days to 10 weeks with payment to take part, mentored by industry

hot housing & mentoring

v effectivefor SME’s

Sustainable funding of these is a challenge…

We hope Our 3rd ‘Key’ will be the DIGITAL MEDIA FUND

In Summary… innovation centred funding

Create Funds with support

Give projects enough resources too succeed

Build on talent & strengths

Identify growth companies

In Summary… innovation centred funding

Create Funds with support

Give projects enough resources too succeed

Build on talent & strengths

Be flexible on short-term output measures

Identify growth companies

Build national and international collaboration

Give a chance to ideasthat make no sense!

West Midlands…the heart of digital media

thank you for listening!

[email protected]

and now over to YOU Q&A and…

Presentation Outline..

Profile & recent achievements

Digital Media Fund& Defining ‘digital’

Innovation Funding & Keys to Success

Your Feedback & topPriorities for Resources

Simplified Business Support & Products

Target Markets &Strategic Priorities